Sugar crash: The decreasing price of sugar will threaten industry revenue growth

The Sugar Processing industry refines sugar from sugar beets and sugarcane and produces sugar products for consumer and industrial use. Over the five years to 2018, the industry has contended with decreasing demand (both domestic and abroad) and volatile input prices. Specifically, the rapidly appreciating dollar stalled the industry's export market. The current period was also marked by steep declines in the price of sugar at the start of the period. Sharp drops in the price of sugar caused operators to decrease prices, thus decreasing revenue. Import penetration and low sugar prices are expected to pressure the industry over the next five years...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • As health consciousness rises, consumers demand products with less sugar with artificial sweeteners
  • Exports will remain a small portion of industry revenue
  • Some sugar processing operators have already begun expanding into no-calorie products
  • Industry Report - Industry Key Buyers Chapter

    The Sugar Processing industry has a low level of market share concentration. In 2018, the top four processors account for less than 30.0% of the industry's revenue. Many companies are small-scale operators, and moreover, industry leaders are cooperatives of independent operators joining forces. According to the US Census Bureau, 59.6% of industry establishments employ fewer than 100 people. Many processors are also vertically integrated, meaning they farm and process the sugar in one operation. Due to the nature of the industry (high barriers to entry and significant internal competition), the number of industry operators is not expected to change significantly in the five years to 2023; consequently, industry market share concentration is expected to remain low in the next five years...purchase to read more.

    Additional Insights for the Sugar Processing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Sugar Processing Industry are

  • Proximity to key markets
  • Optimum capacity utilization
  • Proximity to key suppliers
  • IBISWorld analysts also discuss how external factors such as Per capita sugar and sweetener consumption and Price of sugar in the Sugar Processing industry impact industry performance..

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    What's in this report

    What is the Sugar Processing Industry?

    The Sugar Processing industry comprises establishments primarily engaged in manufacturing raw sugar, liquid sugar and refined sugar from sugarcane, raw cane sugar and sugar beets. This industry acquires its raw material from sugarcane growers. Sugar refiners also buy raw sugar from millers. This raw material is processed into a range of sugar products for industrial and consumer use.

    Industry Products
  • Refined cane sugar
  • Beet sugar
  • Raw cane sugar
  • Industry Activities
  • Raw sugar processing
  • Liquid sugar processing
  • Cane sugar processing
  • Beet sugar processing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita sugar and sweetener consumption
  • Price of sugar
  • Healthy eating index
  • Trade-weighted index

  • Current Performance
  • Downstream demand
  • International trade
  • Profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry trends
  • International trade
  • Sweet spots
  • Table: Sugar Processing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Sugar Processing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Cereal Production
  • Chocolate Production
  • Candy Production
  • Ice Cream Production
  • Cookie, Cracker & Pasta Production
  • Snack Food Production
  • Syrup & Flavoring Production
  • Soda Production
  • Juice Production
  • Grocery Wholesaling

  • Key Selling Industries
  • Hay & Crop Farming
  • Industrial Machinery & Equipment Wholesaling
  • Sugarcane Harvesting

  • Products & Services
  • Beet sugar
  • Refined cane sugar
  • Raw cane sugar
  • Chart: Sugar Processing Industry Products and Services Segmentation

  • Demand Determinants
  • Sweetener substitutes
  • Nutritional concerns
  • Price

  • Major Markets
  • Bakery and cereal producers
  • Confectionery and snack producers
  • Other
  • Dairy and ice cream producers
  • Beverage producers
  • Exports
  • Chart: Major Market Segmentation for the Sugar Processing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWages and depreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Sugar Processing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Sugar Processing Industry

  • Industry Globalization
    American Crystal Sugar Company, Amalgamated Sugar Company,
  • Table: American Crystal Sugar Company - financial performance
  • Table: Amalgamated Sugar Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Sugar Processing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Sugar Processing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Price of sugar (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • A by-product of processed sugar used as fuel for boilers to create steam-generated electricity for sugar mills.
  • Genetically Modified (Gm)
  • A technique where specific changes are introduced into a plant or animal's DNA by genetic engineering techniques. The most common modified foods include soybean, corn and canola.
  • High Fructose Corn Syrup (Hfcs)
  • An alternative sweetener derived from cornstarch.
  • North American Free Trade Agreement (Nafta)
  • A generally duty-free agreement signed by the governments of Canada, Mexico and the United States, creating a trilateral trade bloc in North America.
  • Us Department Of Agriculture (Usda)
  • A federal department that administers programs for US farmers and tracks agriculture sector performance.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Sugar Processing Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Sugar Processing industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Sugar Processing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Sugar Processing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Sugar Processing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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